David Erfle - Gold Market Commentary – Wed 23 Oct, 2019

Weighing the near term drivers for gold – GDX technicals, Brexit, ECB and the Fed

Dave Erfle, Founder of The Junior Miner Junky joins me to share his thoughts on the trading pattern in GDX and the fundamental near term drivers he is watching for the overall gold sector. Still driven by politics and central banks the long term outlook is positive for gold but in the near term we could see some weakness.

Click here to visit Dave’s site and learn more about his newsletter.

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Comments:
  1. On October 23, 2019 at 9:22 pm,
    Excelsior says:

    This was a really good interview today Cory and David. Great thoughts and much appreciated.

    Yes, we’re in that sideways consolidation slog, and most of the sector has been quite stagnant and boring, as the PMs correct in price and time. There’s a bit longer to go in the consolidation, and possibly a bit more weakness, but it won’t last forever, and I’m tuning up my watchlists, spending time researching new companies while we’re in intermission, and making plans for the next leg of the bull.

    Also, we are getting close to the November buying season in Uranium stocks, which have been even more dismal than the base metals or PMs lately. Another key driver in the Uranium sector will be when the Work Group finally comes out with their results, and that got punted 30 days from Oct 10th to Nov 10th.

    These may be the times that try mens souls, but they are also the same times where opportunity driven contrarians look to place their bets when most are disenchanted or starting to lose hope.

    • On October 23, 2019 at 9:26 pm,
      Excelsior says:

      Gold Mining Companies Suck And That’s Why They Offer A Great Investment Opportunity Today

      by @Goldfinger on 23 Oct 2019

      “This Real Vision interview with James Rasteh of Coast Capital Management in New York City has been making the rounds on mining websites, already garnering over 10,000 views. A video on why gold mining companies suck getting 10,000+ views you ask? Yep. It’s that good and so on the money that I would call it required viewing for any investor in the mining or junior mining sectors.”

      “Mr. Rasteh makes numerous key points as to why the gold mining industry has destroyed US$157 billion of capital over the last decade:”

      > Misaligned management compensation structures that are more dependent upon reserve growth or annual production as opposed to net income profitability or share price performance.
      > A tremendous amount of money deployed/wasted in various fruitless exploration endeavors.
      > Terrible M&A decisions.
      > Excessive management compensation.

      “That’s looking in the rearview mirror and also helps to explain why gold miners are currently very shy in terms of making any large acquisitions; over the past decade large acquisitions have generally been disastrous for gold producers. On the positive side of things Rasteh makes a compelling case for why mid-tier gold producers are attractively valued relative to the senior producers. Moreover, the seniors are not replacing reserves at a fast enough pace and their only choice will be to acquire mid-tier producers and/or junior explorers/developers in order to replenish the gold they are producing every day… ”

      https://ceo.ca/@goldfinger/gold-mining-companies-suck-and-thats-why-they-offer-a-great-investment-opportunity-today

  2. On October 23, 2019 at 9:45 pm,
    Excelsior says:

    How $2 Million Became $500 Million in Mining with Bryan Slusarchuk (KNT) (KNTNF) K92 Mining

    by @tommy on 23 Oct 2019

    https://ceo.ca/@tommy/how-2-million-became-500-million-in-mining-with-bryan-slusarchuk

  3. On October 23, 2019 at 9:50 pm,
    Excelsior says:

    Big Ups to two mining characters enjoying themselves down in the Pilbara down under:

    Bob M and the Hedgeless Horseman taking time to enjoy the finer things in life 🙂

    http://cdn.ceo.ca/1er0r2i-EHkY3pjU8AAU_1t%5B1%5D.jpg

    • On October 23, 2019 at 9:51 pm,
      Excelsior says:

      … and by finer things I meant the wine, not mining stocks. (lol)

  4. On October 23, 2019 at 9:59 pm,
    Excelsior says:

    Gold’s Rally Drives a Rush to One of Metal’s Final Frontiers

    By Felix Njini – October 22, 2019

    “Step aside Canada, Australia and South Africa: West Africa is fast becoming the hottest ticket in gold mining.”

    “Producers and prospectors are pouring money into the region as prices rally and the industry at the southern tip of the continent keeps shrinking. While gold miners face a dearth of new discoveries globally, large parts of West Africa have barely been explored. The deposits tend to be shallow — meaning easy access — and relatively low-cost.”

    https://www.bloomberg.com/news/articles/2019-10-23/gold-s-rally-is-driving-a-rush-to-one-of-metal-s-final-frontiers